The UK convenience store market is poised for further growth, with store numbers set to grow an additional 9% by 2027, research by Collier has predicted.
The international real estate adviser found that, in the last decade, the number of convenience stores in the UK has risen from 5,015 stores in 2013 to 8,556 in 2024, marking an uplift of 71%.
It discovered that growth can be seen across the sector, with all major grocers increasing their exposure to convenience stores in recent years. Market share is currently led by Co-op at 38%, followed by Tesco Express at 24% and Morrisons’ M Local at 13.5%.
Colliers said the forthcoming growth of 9% can be attributed to ambitious expansion plans announced by all grocers including Tesco, Waitrose, Asda and Sainsbury’s.
Totalling the plans announced by all grocers, the research from Colliers projects a growth of 260 – 300 new convenience stores by 2027.
Matthew Hobbs, head of retail lease advisory at Colliers, said with this level of demand for new convenience stores, the company expects to see continued rental growth in the sector over the next few years: ”In some key locations, particularly new housing developments, rents have doubled from where they were two to three years ago.
”A large number of leases on the first-generation of convenience stores are now expiring, leaving landlords and occupiers in the position of having to negotiate terms for renewal. It is critical that both parties are represented by specialists who are in possession of the latest open market transactions. Otherwise, they risk selling themselves short in this highly dynamic sector”.
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